American Businesses Continue to Commit to Sustainability Practices - Yet Remain Silent on the Matter: Poll
In a shifting regulatory landscape, leading companies are prioritizing tools that help them assess supplier performance, manage risk proactively, and navigate evolving compliance demands, particularly in the realm of Environmental, Social, and Governance (ESG) issues.
A recent survey, the "2025 U.S. Business Sustainability Landscape Outlook" released by EcoVadis, has revealed a trend of greenhushing among U.S. companies investing in ESG initiatives. This trend arises primarily from fear of regulatory scrutiny, reputational risks, and accusations of greenwashing, despite recognizing sustainability as a competitive advantage.
Key reasons for this silence include heightened legal and regulatory risks, fear of reputational damage and public backlash, strategic use of certifications but limited public promotion, economic motivations, and consequences that undermine trust, reduce visibility of sustainability efforts, limit stakeholder engagement, and ultimately slow environmental progress.
Technology remains a key focus area for investment, with 89% of respondents planning further ESG tech investments over the next 12 months. Carbon engagement platforms, ESG risk mapping tools, and supplier disclosure solutions are among the planned tech investments.
Despite the trend of greenhushing, the survey found that 87% of executives are either maintaining or increasing investments in business sustainability in 2025. Approximately half (47%) of C-suite executives expect supply chain disruptions due to a potential rollback of ESG regulations, and 39% express concern about inflation due to decreased access to critical resources such as food, water, lumber, and essential minerals.
However, only 4% of directors and VPs, and 5% of C-suite respondents, believe that eliminating or reducing ESG oversight would have no negative impact on the global supply chain. On the contrary, 65% of executives view supply chain sustainability as a competitive advantage.
Pierre-François Thaler, co-founder and co-CEO of EcoVadis, emphasizes the importance of transparency and accountability in managing sustainability, stating that it is crucial for companies to communicate their sustainability commitments effectively to build trust with stakeholders.
In conclusion, while companies see sustainability as valuable, they remain silent or under-communicate due to fear of legal, reputational, and market risks under an evolving regulatory environment, resulting in greenhushing as a form of cautious corporate communication strategy. The survey polled 400 executives responsible for business and operational decision-making at companies with over $1 billion in revenues.
- Many companies that are investing in Environmental, Social, and Governance (ESG) initiatives, despite recognizing sustainability as a competitive advantage, are hesitant to speak about it publicly due to the risk of regulatory scrutiny, reputational risks, and accusations of greenwashing, a trend known as greenhushing within the finance industry.
- In spite of the trend of greenhushing, technology continues to be a priority for investment in ESG efforts, with companies planning to increase investments in carbon engagement platforms, ESG risk mapping tools, and supplier disclosure solutions, demonstrating a focus on proactive risk management and sustainability progress in the face of evolving regulatory demands.
